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Link: wsj.com

Article quote:

General Motors Corp. and Chrysler LLC are accelerating merger discussions amid strong support from potential lenders that are eager to see a deal done.

GM, set to report dismal third-quarter earnings in coming weeks and scrambling to find new sources of funding, is aiming to get a deal done as early as the end of October, according to people familiar with the matter.


Link: http://www.cnbc.com//id/27228423?__source=yahoo|headline|quote|text|&par=yahoo

Merger talks between General Motors and privately held Chrysler are moving at a faster pace as potential lenders have thrown their support behind a deal between the two U.S.-based automakers, CNBC has learned.

People close to the situation have told CNBC that the automakers plan to either reach a deal within the next two weeks or abandon the talks. The key to any deal: Getting GM to embrace whatever conditions Cerberus Capital Management, which owns Chrysler, is pitching.

No details were available about how such a deal would be structured, but the people at both firms believe there would be big advantages to combining their equity. They also think a merged entity would find it easier to raise capital—possibly from the U.S. government.

The Detroit automakers would hope to receive expedited antitrust approval for any merger, sources said.

JPMorgan Chase, a big holder of Chrysler bank debt, is also pushing for the deal, the Wall Street Journal reported Thursday.

Link: http://biz.yahoo.com/rb/081016/business_us_chrysler_talks.html?.v=2

Chrysler assets under consideration for purchase by GM include Chrysler's top-selling minivan line, a market segment Chrysler pioneered almost 25 years ago, and its truck-production facility in Mexico, one of the sources said.

Link: http://www.reuters.com/article/marketsNews/idINN1647394020081017?rpc=44

NEW YORK, Oct 16 (Reuters) - Private equity firm Cerberus Capital Management CBS.UL is nearing a deal to buy Daimler AG's (DAIGn.DE: Quote, Profile, Research, Stock Buzz) remaining stake in Chrysler LLC, sources familiar with the talks said.

Cerberus is in talks with various automakers including General Motors Corp and Renault SA involving alliances or a sale of all or part of Chrysler, sources have told Reuters.

Any such deal would hinge on Cerberus acquiring the 19.9-percent stake of the third-largest U.S. automaker it does not already own, the sources said.

Daimler has no interest in participating in a merger between Chrysler and another automaker, a person familiar with the German automaker's planning said earlier this week.
 

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I can't comprehend this at all, but then again, I've put in 0% effort.

Is this politically motivated? A way to get rid of the rest of GMAC so it can get bailed out? Does GM get electric cars, and does this further a government agenda?
 

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This isn't good......I really hope this doesn't actually happen, like when the GM/Renualt/Nissan alliance didn't work out. Dodge is not Pontiac and Chrysler is not anything. Not good.....
 

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I hope if any deal comes out of this is the GM absorbing Chrysler option!!
 

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Well, now the Dodge Challenger and Camaro will be in the same "family", "team" or whatever, so they can BOTH go after the Mustang together. Actually, when I heard this news, I kind of thought...hmmmm, maybe I COULD get a Challenger, and still be loyal to GM. That would be cool! Not that I'm that serious of getting either the Challenger, or Camaro, but....I like the Challenger better, because of it's "closer to the original" style, and I like 70's muscle cars, so it excites me a bit more then the Camaro, eventhough I'm always purchasing GM.
 

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+1 and I could even add then Nardelli is being kicked in the (censored) as well
My contempt for him matches that I feel for Roger Smith for what he did to GM, though is a mere shadow of the contempt I feel for Nardelli's close pal The Decider.
 

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As we can see good & bad possibilities with a deal I guess we will just have to sit around and wait until we hear what the actual terms are before we can really say it is a bad deal.
 

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This has pretty much developed in the last 36 hours.

GM seems to be more interested in the deal than Renault-Nissan.

The issue right now is the deal structure and the numbers.

How much is GMAC worth?

How much is Chrysler LLC worth?

How much is the GM REALLY worth?

Another issue is that with this deal, Cerberus may gain a controlling stake in General Motors, given current stock prices.

Integration of the product lines is secondary thinking right now.
 

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If this goes through, I hope GM goes belly up. I resent GM's management - the worst in the industry for having the audacity to purchase another company after they have squandered over $5 billion in shareholder funds on failed takeovers, stupid acquisitions, and loss sales of other brands. This GM management regime is without question one of the dumbest, more ignorant, most foolhardy, and contemptible in the automobile industry today. Countless tens of thousands of working Americans will be unemployed because of this stupid acquisition. Robert Lutz and his mutt Wagoner are some of the most repugnant men in America for what they have done to GM, their employees, to the GM products, and to the future unemployed.

I wish GM all the bad karma, bad luck, and indignation they deserve. GM makes me ashamed to be an American because GM's managers are lazy, good-for-nothing neanderthals. Not one of GM's top managers has an ounce of shame for offering the products they do or how they treat their employees.

It would be one thing if GM had great products and had followed consistent and ethical business practices and had to lay off workers. But because of the continual bad management decisions that Wagoner and Lutz et al have made in the past decade of their raping of GM, GM has intentionally given their employees and customers the shaft and have done so with glee. I've chronicled the failures of the Yutz and the Hair Piece several times this past week and am really sad for the Chrysler workers who are going to be the ones who pay the ultimate price for the Greed and Egos of GM management.
 

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Integration of the product lines is secondary thinking right now.
Now that is an example of horrible management. Except for the minivans and the basic off-road Jeeps, there seems to be nothing of value for GM. Even them the minivans are too large, so are not selling well. Getting rid of GMAC may be essential for GM, but it would be humorous if they think there are significant product integration possibilities - what Chrysler product is superior to the competitive GM product, except the off-road Jeeps?
 
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